An Education Week analysis found dozens of posts on Facebook and Twitter targeting parents who might need a "back to school" loan. Some of these loans — which are personal loans and can be used for anything, not just school supplies — are considered predatory, experts say, with sky-high rates and hidden fees. "Any time there are expenses that are coming up in a family's life, whether it's back-to-school or Christmas, we tend to see a push from lenders to try to get people to come in and use their products," said Whitney Barkley-Denney, the senior policy counsel for the Center for Responsible Lending. "These loans are built on the premise of you taking out one loan after another after another, to keep people in that debt cycle." Families of K-12 students plan to spend, on average, a record $696 this back-to-school season, according to the National Retail Federation, with the most money going toward clothing and accessories, followed by electronics like computers and calculators, shoes, and school supplies ranging from pencils to backpacks. "Back to school expenses have you stressing?" one Facebook ad for the Tennessee-based company Advance Financial 24/7 read. "We can help." Clicking on the link in the ad brings people to an application page for flex loans, an open line of credit that allows borrowers to withdraw as much cash as they need up to their credit limit, and repay the loan at their own pace. But it's an expensive line of credit — Advance Financial charges an annual percentage rate of 279.5 percent.
